Winning Stock Forecast: ARRAY Stock Gains 65.65% in 14 Days

Over the period of June 4th to June 18th, Array stock (Array BioPharma Inc., NASDAQ: ARRY) stock price rose by 65.65% following a strong buy rating given by I Know First’s market forecasting algorithm. The Boulder, Colorado-based company primarily focuses their work on discovering, developing, and commercializing small molecule drugs to treat patients with cancer and other diseases. Conducting business in North America, Europe, and the Asia Pacific, the biotechnology firm’s two main drugs, Braftovi and Mektovi, are currently in the market for treating skin-cancer patients who carry certain genetic alterations and appear poised to help treat some colon and rectal patients, assuming their ongoing studies are successful. Commonly taken together, what separates these two treatments from similar competitors is that they are able to target the specific genetic changes causing the cancers of certain patients.

The massive jump in share price, which included a 56.94% increase in one day of trading, came as a result of Array’s announcement on June 17th that they are to be acquired by Pfizer for $10.64 billion, or $48 per share, in cash, a 64% premium over ARRY’s previous day close of $29.59. Pfizer, one of the world’s largest pharmaceutical companies, is hoping to expand its portfolio of cancer drugs in order to integrate a market that is predicted to grow to worldwide sales of $237 billion in 2024, a 14.34% annual increase when compared to the $138 billion that the sector is expected to bring in this year.

(Source: EvaluatePharma)

The upward movement of the stock was not without warning as, on June 4th, I Know First issued a 14-day forecast for ARRY with a bullish signal of 4.19 and a predictability indicator of 0.37. Indeed, ARRY gained an incredible 65.65% in the corresponding time range. The forecast referenced in this article was issued as part of the Biotech Stocks package.

The move by Pfizer is the latest example of big companies acquiring smaller biotechnology players to enter the business of cancer, which includes Bristol-Myers Squibb Co.’s $74 billion deal to acquire Celgene Corp. in January. As advancements in medicine and technology continue, pharmaceutical companies are looking to gain a spot in genetically targeted cancer drugs, which many view as the future of cancer treatment. Pfizer plans to fund the deal through debt and existing cash, and hopes to close the transaction by the end of the year. All in all, the move looks like a positive one for Pfizer, as Array’s annual product sales are expected to reach $1 billion by 2023, a figure that will grow even larger if they gain approval for any of the several drugs they currently have in clinical development.

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